If you are repatriating back to the UK or any other country for that matter, you might be wondering what you can do with your Swiss pension.
We have written many articles about transferring UK pension assets but what happens with your Swiss vested benefits pension when you leave Switzerland? We have seen an increased demand for advice in this area so we have decided to produce this post to offer some assistance.
Whilst many expatriates move to Switzerland for work, only a small percentage of them stay once they retire. There are many reasons for this such as being closer to family in the UK and more importantly the cost of living.
Once you have decided to repatriate to the UK you have two options with your Swiss vested benefits pension.
On your statement you will see how much income your pension will be worth to you should you choose to take an income in the form of an annuity. Whilst the promise of an income for life can be quite attractive, it is important to consider income taxes and succession planning. If you decide to draw an income you will pay income tax where you are resident an NOT in Switzerland. This can have complications as the UK and EU have much higher tax rates than Switzerland. Also when you do pass away, you may wish to pass down as much of your wealth as possible and with an annuity this will be an issue.
The preferred option for the majority of our repatriating clients. On your statement you will have a lump sum value and if you choose to have this amount paid out to you, you will simply pay a much lower withholding tax which is between 4-6%. No further income taxes will be levied once in the UK and you can invest this capital either in a UK compliant platform or wrap it in trust such as a discounted gift trust. Once the capital is in your UK bank account you can speak with one of our UK qualified advisors who will help you find a suitable home for it.
Need Some More Information?
Retirement planning and structuring the right plan for you and your family can be extremely challenging. If you would like some guidance on this matter or any other aspect of your financial planning please do feel free to contact us. Our team will be delighted to assist you.
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